How Does the Strait of Hormuz Affect Oil Prices?

The Strait of Hormuz directly affects oil prices because 21 million barrels of crude oil — roughly 21% of global daily consumption — pass through this 21-mile-wide chokepoint every day. When Iran closed it on March 27, 2026, oil surged from $85 to $126 per barrel within days. No other single geographic point on Earth has as much power over global energy markets.

This article explains everything you need to know about the Strait of Hormuz: where it is, why it matters, who depends on it, what happens when it closes, and what alternatives exist. Whether you are an investor, a student, or simply someone who noticed gasoline prices doubling at the pump, this guide will give you the complete picture.

Where Is the Strait of Hormuz? Geography Explained

The Strait of Hormuz is a narrow waterway located between Iran to the north and Oman (Musandam Peninsula) and the United Arab Emirates to the south. It connects the Persian Gulf (also called the Arabian Gulf) to the Gulf of Oman and from there to the open Arabian Sea and Indian Ocean.

Key Geographic Facts

The shipping lanes are remarkably narrow. Inbound tankers (heading into the Gulf to load oil) use one two-mile-wide lane. Outbound tankers (carrying oil to the world) use another. A two-mile buffer separates them. This means the total navigable corridor for the world’s most important oil route is roughly six miles wide — narrower than many rivers.

Why This Location Matters Strategically

Iran’s coastline runs along the entire northern shore of the strait. This gives Iran direct military access to the waterway. Iranian naval bases, missile batteries, and the Islamic Revolutionary Guard Corps Navy (IRGCN) fast-attack boats are positioned along this coast. Any ship passing through the strait is within range of Iranian weapons systems for the entire transit, which takes approximately two hours for a loaded supertanker.

On the southern side, the Musandam Peninsula — an exclave of Oman separated from the rest of Oman by UAE territory — juts out into the strait. The UAE’s Fujairah port on the Gulf of Oman side is the primary destination for ships that want to avoid entering the Persian Gulf entirely, which is why the Habshan-Fujairah pipeline was built as an alternative export route.

The islands of Abu Musa, Greater Tunb, and Lesser Tunb — disputed between Iran and the UAE — sit at the western entrance to the strait. Iran has militarized these islands, placing radar stations and anti-ship missile batteries on them, further extending its ability to monitor and threaten traffic entering and leaving the strait.

How Much Oil Flows Through the Strait of Hormuz?

The volume of oil transiting the Strait of Hormuz is staggering. Here are the numbers as of early 2026, before the March closure:

Daily Oil Flow Data Table

To put 21 million barrels per day in perspective: that is more oil than the entire daily production of the United States (approximately 13 million barrels/day) or Saudi Arabia (approximately 11 million barrels/day). If the strait were a country, its daily oil throughput would make it the largest oil “producer” on Earth.

Which Countries Export Oil Through the Strait?

Notice that even Iran itself exports most of its oil through the strait. This is one of the paradoxes of the Hormuz situation: closing the strait hurts Iran’s own oil revenues, which is why most analysts before 2026 considered a full closure unlikely. That assumption proved catastrophically wrong.

Who Depends on the Strait of Hormuz? Country-by-Country Breakdown

The countries that import oil through the Strait of Hormuz span three continents. Here is a detailed breakdown of dependency:

Asia: The Most Dependent Region

India is the most vulnerable major economy because it imports 60% of its oil through the strait but has only 10 days of strategic petroleum reserves. Japan and South Korea are more dependent percentage-wise but maintain much larger strategic reserves that could buy them months of time during a crisis.

Europe: Diversified but Still Exposed

European countries receive approximately 20-25% of their crude oil through the Strait of Hormuz. While Europe has diversified its oil sources since the 1973 oil crisis — importing from Norway, North Africa, and West Africa — Gulf oil still constitutes a meaningful share. Countries like Greece, Italy, and Spain are particularly dependent on Gulf crude due to their Mediterranean refinery configurations designed to process heavier Gulf crude grades.

Germany and France are less directly dependent (10-15% of imports via Hormuz) but are affected through global price transmission — when Hormuz closes, all oil prices rise globally regardless of where a country sources its specific barrels.

Americas: Indirect but Real Impact

The United States itself imports relatively little oil through the Strait of Hormuz directly (approximately 5-8% of total imports). However, because oil is a global commodity priced on global markets, a Hormuz closure affects American consumers just as much as Asian ones. When Hormuz closes, Brent crude rises globally, and American gasoline prices follow — as the world witnessed in March-April 2026 when US gas prices rose by approximately $0.80-1.00 per gallon despite minimal direct supply disruption.

Canada and Brazil, as net oil exporters, actually benefit financially from Hormuz disruptions through higher prices for their own crude, though their consumers still pay more at the pump.

The Mechanism: How Hormuz Disruptions Move Oil Prices

Understanding why oil prices react so violently to Hormuz disruptions requires understanding four key mechanisms in the global oil market:

1. The Spare Capacity Problem

Global oil production in early 2026 was approximately 102 million barrels per day, with global consumption at about 100 million barrels per day. That means the world had roughly 2 million barrels per day of spare capacity — a razor-thin 2% margin. When the Strait of Hormuz closure threatened to remove 21 million barrels per day from the market (even if pipeline alternatives could replace 6.5 million), the potential shortfall of 14.5 million barrels per day dwarfed global spare capacity by a factor of seven.

This is like a highway with 100 lanes of traffic where 98 lanes are full. If you suddenly close 21 lanes, the remaining capacity cannot absorb the traffic — even if you can reroute 6 lanes through side streets. The system breaks down.

2. The Insurance and Shipping Multiplier

Even before a single barrel of oil is actually lost, the financial infrastructure of oil shipping amplifies the crisis:

• War risk insurance premiums for tankers transiting the Persian Gulf jumped from 0.05% of hull value to 2-5% of hull value after the March 2026 closure — a 40-100x increase
• A typical Very Large Crude Carrier (VLCC) is valued at $120-150 million. War risk insurance went from $60,000-75,000 per transit to $2.4-7.5 million per transit
• These costs are passed directly to oil buyers, adding $2-5 per barrel even for oil that successfully transits the region
• Many shipping companies simply refused to send tankers into the Persian Gulf, reducing available shipping capacity and creating a bottleneck even after the strait partially reopened

3. The Speculation Amplifier

Oil futures markets react to anticipated supply disruptions, not just actual ones. When traders see Iranian naval vessels mining the strait on satellite imagery, they bid up oil futures immediately. This is why oil prices can spike 10-20% in a single day on Hormuz news, even before a single tanker is actually blocked. Modern algorithmic trading systems, which execute trades in milliseconds based on news feeds, have accelerated this dynamic significantly compared to previous decades.

The 2026 crisis saw oil futures volume spike to 3x normal levels in the first 48 hours, as speculators, hedge funds, and automated systems all rushed to position for expected supply disruption. This speculative activity adds “fear premium” on top of the actual supply impact.

4. The Strategic Reserve Response and Its Limits

When the International Energy Agency (IEA) coordinates a strategic petroleum reserve (SPR) release — as it did in April 2026 — the market response depends on the scale relative to the disruption. The coordinated release of 2 million barrels per day from global SPRs calmed markets temporarily but was widely seen as insufficient to replace the 14.5 million barrel per day shortfall. SPR releases are also time-limited — even the largest reserves (the US SPR at approximately 400 million barrels) would be depleted within months at elevated release rates.

The 2026 Case Study: What Actually Happened When Iran Closed the Strait

The March-April 2026 Strait of Hormuz crisis is now the most important case study in energy security history. Here is a detailed day-by-day account of the oil price impact:

Timeline of the 2026 Hormuz Closure

Key Observations from the 2026 Closure

Speed of reaction: Oil prices moved 27% in the first 48 hours — faster than any previous oil shock including the 1973 Arab embargo, the 1990 Iraqi invasion of Kuwait, or the 2019 Saudi Abqaiq drone attack. Modern algorithmic trading amplifies the speed of price reactions exponentially.

Pipeline alternatives were insufficient: Saudi Arabia’s East-West Pipeline and the UAE’s Habshan-Fujairah Pipeline reached maximum capacity within 48 hours of the closure, adding roughly 6.5 million barrels per day of export capacity bypassing the strait. But this replaced only 31% of the strait’s normal throughput, leaving a massive gap of approximately 14.5 million barrels per day.

Regional economies suffered immediately: Countries like India and Pakistan, with minimal strategic reserves and high Hormuz dependency, faced fuel shortages within 10 days. Pakistan imposed fuel rationing on April 5, 2026. India restricted non-essential driving in several states. Egypt saw fuel prices rise 25-30% as global oil price increases strained the government’s subsidy budget.

The closure hurt Iran too: Iran’s own oil exports dropped to near zero during the closure, costing the Iranian economy approximately $150-200 million per day in lost oil revenue. This economic self-harm was one of the factors that eventually pushed Iran toward the negotiating table.

Gold surged alongside oil: As always happens during major geopolitical crises, gold prices surged in tandem with oil. Gold rose from approximately $140/gram to over $150/gram ($4,350 to $4,686/oz) during the same period, as investors fled to safe-haven assets.

Historical Closures and Threats: The Strait of Hormuz Track Record

The 2026 closure was the most severe Hormuz disruption in history, but it was not the first time the strait factored into oil price movements:

Major Hormuz-Related Oil Price Events in History

The pattern is clear and consistent across four decades: even verbal threats of Hormuz disruption move oil prices by 5-15%. Minor incidents (tanker seizures, nearby attacks) create 4-15% spikes. Actual major disruptions create 20-50% price spikes. The 2026 closure confirmed the worst-case scenario that energy analysts had warned about for decades.

Pipeline Alternatives: Can the World Bypass the Strait of Hormuz?

Several pipeline projects exist specifically to reduce dependence on the Strait of Hormuz. Here is the current capacity as of April 2026:

Existing Bypass Pipeline Infrastructure

The combined bypass capacity of 6.5-7.4 million barrels per day is substantial but covers only about one-third of the strait’s normal throughput. Even with all pipelines running at maximum capacity, a full Hormuz closure creates a shortfall of approximately 13.5-14.5 million barrels per day — an impossible gap for global markets to absorb without massive price increases and demand destruction.

Why More Pipelines Haven’t Been Built

Building new pipeline infrastructure to fully bypass the Strait of Hormuz would require:

• Investment of $50-100 billion for sufficient capacity to match strait throughput
• 5-8 years of construction time for large-diameter pipelines capable of carrying millions of barrels per day
• Cross-border agreements between countries that do not always cooperate or share strategic interests
• Security concerns: Pipelines crossing hundreds of miles of desert are themselves vulnerable to sabotage, drone attacks, or military strikes
• Limited economic incentive before 2026: The strait had never been fully closed, so the return on investment for bypass infrastructure seemed uncertain to policymakers and energy companies

The 2026 crisis has fundamentally changed this calculus. Saudi Arabia announced in April 2026 a feasibility study for expanding the East-West Pipeline capacity to 7 million barrels per day. The UAE is studying a second pipeline to Fujairah with 2 million barrels per day capacity. Iraq is exploring reactivation of the IPSA pipeline through Saudi Arabia. These projects, if completed, could reduce Hormuz dependency significantly — but they are years away.

The Insurance and Financial Cost Factor

One aspect often overlooked in discussions of Hormuz and oil prices is the insurance and financial cost multiplier. Even when oil is physically flowing through the strait, elevated risk levels increase the cost of every barrel:

Insurance Cost Comparison: Normal vs. Crisis

These costs are embedded in every barrel of oil that passes through or near the strait, and they persist long after the immediate crisis ends. As of April 10, 2026, war risk insurance rates for the Persian Gulf remain elevated at 0.5-1.0% of hull value — 10-20 times higher than pre-crisis levels — even though the strait has been partially reopened under naval escort.

The “risk premium” embedded in oil prices due to Hormuz uncertainty adds an estimated $5-15 per barrel to global oil prices even during “normal” periods when the strait is open but tensions are elevated. During active crises, this premium can reach $30-40 per barrel.

Why the Strait of Hormuz Matters to Ordinary People

The Strait of Hormuz might seem like a distant geopolitical concern relevant only to diplomats and oil traders. In reality, its effects reach directly into everyday life for billions of people:

At the Gas Station

When Brent crude rose from $85 to $126 per barrel in late March 2026, gasoline and diesel prices worldwide followed within days. In Egypt, fuel prices rose approximately 25-30%, straining household budgets already squeezed by inflation. In Pakistan, the government imposed fuel rationing. In India, diesel prices hit record levels, increasing transportation costs for food and consumer goods. Even in the United States, which produces most of its own oil domestically, gasoline prices rose by approximately $0.80-1.00 per gallon because US refineries price their products based on global Brent crude, not just domestic WTI.

At the Grocery Store

Higher oil prices mean higher transportation costs, which translate directly into higher food prices. The United Nations Food and Agriculture Organization (FAO) estimated that the 2026 Hormuz closure contributed to a 6-8% increase in global food prices within just two weeks. The impact was most severe in oil-importing developing nations across Africa, South Asia, and the Middle East — countries where families already spend 40-60% of their income on food.

In Your Electricity Bill

Countries that generate electricity from oil or natural gas — particularly in the Middle East, South Asia, and Southeast Asia — saw power generation costs spike immediately. In Pakistan, electricity bills rose 15-20% in April 2026 directly due to the higher cost of imported LNG and fuel oil. In Egypt, the strain on the government’s energy subsidy budget worsened fiscal pressures. Even countries with primarily coal or nuclear electricity saw some pass-through effects as natural gas prices rose in sympathy with oil.

In Your Investment Portfolio

Stock markets in oil-importing countries fell sharply during the crisis. Japan’s Nikkei index dropped 8% in the week following the closure. India’s Sensex fell 6%. South Korea’s KOSPI dropped 5%. Meanwhile, energy stocks and gold surged — gold rose to over $150/gram ($4,686/oz). Investors who understood the Hormuz dynamic and had positioned defensively before the crisis were able to protect their portfolios; those who were unprepared suffered significant losses.

In Airline Tickets and Travel Costs

Jet fuel prices track crude oil closely, with very little lag. Airlines worldwide announced fuel surcharges within days of the Hormuz closure. Ticket prices for flights to and from the Middle East rose 15-30%, and several airlines temporarily rerouted flights to avoid Persian Gulf airspace entirely, adding hours and fuel costs to journeys between Europe and Asia.

Iran’s Strategic Position: Why Hormuz Is Iran’s Ultimate Leverage

Understanding why Iran chose to close the strait in 2026 requires understanding Iran’s strategic calculation and asymmetric military doctrine:

Iran’s conventional military capability is not designed to match the United States or allied forces in a direct, symmetrical confrontation. Iran’s air force relies largely on aging aircraft (some dating to pre-1979 American deliveries), and its navy’s surface fleet is small by regional standards. But Iran has invested decades and billions of dollars in asymmetric capabilities specifically designed to control the Strait of Hormuz:

• Naval mines: Iran possesses an estimated 5,000-6,000 naval mines, ranging from simple contact mines to sophisticated influence mines that can detect specific ship types. Mining the strait — only six miles of shipping lanes — is relatively quick and extremely difficult to counter. Clearing a minefield takes 10-50x longer than laying one
• Anti-ship cruise missiles: Iran has deployed hundreds of anti-ship cruise missiles (including domestically produced Noor, Ghader, and Qadir variants) along its southern coastline, with ranges covering the entire strait and into the Gulf of Oman
• Fast attack craft: The IRGCN operates hundreds of small, fast boats capable of swarming attacks on tankers — overwhelming point defenses through sheer numbers
• Submarines: Iran’s three Russian-built Kilo-class diesel-electric submarines and fleet of domestically built Ghadir-class midget submarines can operate effectively in the shallow, confined waters of the strait where larger navies’ acoustic advantage is reduced
• Shore-based artillery and rockets: Conventional artillery and multiple rocket launcher systems positioned along the Iranian coast can reach the shipping lanes, supplementing the more sophisticated missile systems
• Ballistic missiles: Iran’s medium-range ballistic missile arsenal can target ports and oil infrastructure throughout the Gulf, extending the threat beyond just the strait itself

This arsenal makes the Strait of Hormuz Iran’s most powerful strategic asset. The threat of closure gives Iran leverage disproportionate to its overall military and economic strength, because the economic consequences of a closure affect the entire global economy — creating pressure on all nations, including those not directly involved in any conflict with Iran, to prevent or quickly end hostilities.

The Geopolitical Dimension: Who Benefits and Who Loses

Countries and Entities That Benefit from a Hormuz Disruption

• Russia: As the world’s second-largest oil exporter with no Hormuz dependency, Russia benefits enormously from higher global oil prices caused by Gulf disruptions. Russia’s oil revenue increased by an estimated $200+ million per day during the peak of the 2026 crisis
• Norway, Canada, Brazil: Non-Gulf oil producers see windfall revenue from higher prices while their own supply chains are unaffected
• US shale producers: While American consumers suffer from high gasoline prices, US oil and gas companies see revenues surge, creating a political tension between consumer relief and energy industry profits
• Venezuela and Nigeria: Oil-dependent economies outside the Gulf region benefit from higher prices, potentially easing fiscal crises
• Gold miners and gold-holding nations: Gold prices rise in tandem with oil during geopolitical crises, benefiting producers and central banks with large gold reserves

Countries and Populations That Suffer

• Japan, South Korea, Taiwan: These advanced economies are critically dependent on Gulf oil imports and face immediate economic damage from price spikes and potential supply shortages
• India: With 60% Hormuz dependency and only 10 days of strategic reserves, India is acutely vulnerable — the 2026 crisis forced emergency fuel rationing measures
• China: Despite having 80 days of reserves, China’s massive daily consumption means even short disruptions create significant economic strain
• Gulf exporting countries (paradoxically): While their oil is worth more per barrel during a crisis, they cannot export most of it during a full closure, resulting in net revenue loss — Saudi Arabia, UAE, Kuwait, and Qatar all lose billions in export revenue
• Egypt: Despite not being a major oil producer or importer through Hormuz, Egypt suffers from global oil price increases that strain its economy, increase the cost of fuel subsidies, weaken the Egyptian pound, and raise food import costs. The Suez Canal, which could theoretically benefit from rerouted traffic, actually sees reduced traffic when regional instability rises as shippers avoid the entire Middle East
• Lebanon: Already in deep economic crisis, higher fuel costs and regional instability deepen the suffering of ordinary Lebanese citizens who are paying in dollars for fuel while earning in devalued local currency
• Palestine: The broader regional instability triggered by Hormuz crises always worsens conditions for Palestinians, as economic pressure and military escalation in the region reduce international attention and aid flows
• Pakistan and Bangladesh: Oil-importing nations with limited reserves and fiscal capacity face acute economic distress — Pakistan was forced to impose fuel rationing within 10 days of the 2026 closure

Looking Ahead: What the 2026 Crisis Changes

The 2026 Strait of Hormuz closure has permanently changed how the world thinks about energy security. Several major structural shifts are now underway:

1. Accelerated Pipeline Construction

Saudi Arabia and the UAE have announced plans to expand their bypass pipeline capacity significantly. Saudi Arabia’s feasibility study for expanding the East-West Pipeline to 7 million barrels per day, and the UAE’s second Fujairah pipeline project, could raise combined bypass capacity to 10-12 million barrels per day by 2030-2032. This would still not fully replace the strait’s throughput but would significantly reduce the worst-case impact of a future closure.

2. Strategic Reserve Expansion Worldwide

India, which was caught dangerously unprepared with only 10 days of strategic reserves, announced plans to expand to 90 days of import cover by 2030 — a massive investment in storage infrastructure. South Korea and Japan are increasing their already substantial reserves. China is accelerating fill rates for its strategic petroleum reserve. Even European nations that had been drawing down reserves are now rebuilding.

3. Energy Transition Acceleration

The Hormuz crisis provided powerful new momentum to renewable energy investment worldwide. The argument that solar, wind, and nuclear power reduce dependence on vulnerable maritime chokepoints resonated with policymakers who had previously been lukewarm on rapid energy transition. Several Asian nations accelerated their nuclear power programs specifically citing Hormuz vulnerability.

4. New Diplomatic Architecture for the Gulf

The crisis demonstrated the urgent need for a regional security framework in the Persian Gulf that includes Iran as a stakeholder rather than isolating it. Several diplomatic initiatives launched in April 2026 aim to create a multilateral agreement guaranteeing freedom of navigation through the strait, with Iran as a party. China and India, as major Gulf oil importers, are playing active roles in these negotiations alongside regional players.

5. Reshaping of Oil Contracts and Trade

Oil buyers are increasingly demanding “delivered” pricing (CIF/DES) that accounts for transit risk, rather than “FOB” pricing that leaves the buyer responsible for shipping and insurance. This structural shift is moving the logistics and insurance burden back toward Gulf producers, who are better positioned to manage strait-related risks and who have the most to gain from keeping trade flowing.

Understanding Oil Price Formation: Where Hormuz Fits

The Strait of Hormuz is the single most important supply-side risk factor in global oil pricing, but it operates within a broader framework of price determination:

Oil Price Factors Compared

What makes Hormuz unique among all these factors is the combination of extreme magnitude and immediate speed. No other factor can move oil prices by 20-50% within days. OPEC production decisions can have a similar total magnitude but play out over months. Recessions can crash prices even further but take quarters to materialize. The Hormuz factor is the closest thing to an “instant shock” in energy markets — and the 2026 closure proved this theory with devastating clarity.

Practical Implications: What Should You Do?

If You Are an Investor

• Energy exposure: Maintain some allocation to energy stocks or oil ETFs as a natural hedge against Hormuz-related price spikes. Even a 5-10% energy allocation can significantly offset losses in oil-sensitive sectors during a Hormuz crisis
• Gold: Gold historically rises alongside oil during geopolitical crises — gold surged past $150/gram ($4,600/oz) during the 2026 Hormuz crisis. Gold at current levels remains a key safe-haven hedge
• Avoid over-concentration in oil-import-dependent equity markets (Japan, India, South Korea) without corresponding energy or commodity hedges
• Monitor early warning indicators: The Baltic Exchange’s tanker rate indices, Lloyd’s war risk premium quotes, and the Brent-WTI spread are early signals of Hormuz stress building before headlines appear
• Consider oil options: For sophisticated investors, out-of-the-money call options on oil futures can provide asymmetric protection against sudden Hormuz-related spikes at relatively low cost

If You Are a Business Owner

• Fuel hedging: If your business is fuel-intensive (logistics, airlines, manufacturing, agriculture), consider futures or options contracts that protect against oil price spikes. The cost of hedging is far less than the cost of an unhedged Hormuz crisis
• Supply chain diversification: If your supply chain relies on goods shipped through the Persian Gulf, identify alternative routes, suppliers, and shipping providers now — not during the next crisis
• Price adjustment mechanisms: Build fuel surcharge clauses into long-term contracts to pass through Hormuz-related cost increases rather than absorbing them
• Inventory buffers: For critical inputs sourced from Gulf countries, maintain larger safety stock than just-in-time models suggest — the 2026 crisis showed that “just-in-time” becomes “just-too-late” when a chokepoint closes

If You Are a Consumer

• Fuel efficiency matters financially: Higher oil prices make fuel-efficient vehicles and driving practices significantly more economically valuable. Every liter saved during a Hormuz crisis is money kept in your pocket
• Energy diversification at home: If possible, reduce dependence on oil-based heating and transportation — the Hormuz crisis strengthens the financial case for electric vehicles, solar panels, and energy-efficient appliances
• Food budgeting: Be prepared for food price increases following any Hormuz escalation, as transportation costs feed directly into food prices with a 1-2 week lag
• Stay informed: Understanding Hormuz dynamics helps you make better financial decisions. When you see “Iran tensions” in the news, you now know what that means for your fuel bill, grocery prices, and investment portfolio

Conclusion: The 21 Miles That Control the Global Economy

The Strait of Hormuz is, by any measure, the most important chokepoint in the global economy. Twenty-one million barrels of oil pass through 21 miles of water every day, and any disruption sends shockwaves through energy markets, stock markets, grocery prices, and electricity bills for billions of people worldwide.

The 2026 closure proved that the worst-case scenario energy analysts had warned about for decades was not only possible but could happen rapidly and with devastating economic consequences. Oil surging from $85 to $126 per barrel in five days demonstrated the fragility of the global energy system’s dependence on this single narrow waterway.

Understanding Hormuz is not just an academic exercise. It is essential knowledge for anyone who wants to understand why oil prices move the way they do, why geopolitical events in the Persian Gulf matter to a family in Cairo or Mumbai or Tokyo, and why the world’s energy future — including the accelerating push toward renewables — is ultimately shaped by this narrow strip of water between Iran and Oman.

The lesson of 2026 is simple but profound: the global economy’s dependence on a 21-mile-wide waterway is a structural vulnerability that no amount of diplomatic assurance can fully eliminate. The only real solution is reducing that dependence — through pipeline diversification, strategic reserves, and ultimately, the transition to energy sources that don’t need to pass through chokepoints at all.

Current oil prices as of April 10, 2026: Brent crude at approximately $108-112 per barrel, WTI at approximately $104-108 per barrel. Prices remain elevated above pre-crisis levels of $85/barrel due to ongoing regional tensions, residual shipping disruptions, and elevated insurance costs that may take months to normalize.